Have a $5,000 investment? Purchasing this nearly 6% dividend stock can turn it into nearly $300 in easy passive income each year.

Investing money in income-generating assets is an easy way to start earning some kind of passive income. The more money you invest, the higher the returns you get About this investmentthe more passive income you will charge.

WP Carey (NYSE: WPC) Check out the high yield box. Real estate investment trusts yield nearly 6% (Real Estate Investment Trust)based on S&P 500The dividend yield is less than 1.5%. It can turn $5,000 of investment into nearly $300 of passive income.

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WP Carey has a diversified portfolio of high-quality, operating key commercial real estate in North America and Europe. It has 1,614 properties including industry, warehouses, retail and various other types for long-term protection Net lease Built-in rental upgrade. The REIT also has 78 self-storage locations operated by others under management agreements.

REIT's net lease portfolio provides it with stable rental income. This lease structure requires tenants to cover all operating expenses of the property, including routine maintenance, real estate taxes and construction insurance. Half of its leases link rent to inflation, while 47% of the remaining contracts raise rent at a fixed tax rate. The remaining 3% uses another mechanism, such as a portion of the property's revenue. As a result, the company's base rents tend to rise at a lower odds rate each year.

WP Carey aims to pay 70% to 75% of its stable and growing cash flow in its dividend. It retains the rest of the investment to invest in additional income to build real estate.

The rise in rental income from existing properties provides a good growth base for WP Carey. The company supplements rental growth by investing money to expand its portfolio.

Real Estate Investment Trusts have spent the past few years Main Portfolio upgrade. It's already for sale or Rotate Its entire office combination. It also sold a portfolio of self-store attributes to the operator and abandoned several other non-core attributes. WP Carey has always been Reclaim this capital Back to higher quality performance with long-term rental growth potential for net leases with embedded fixed or inflation-linked rents.

WP Carey invested $1.6 billion in new properties last year. The company plans to invest $1 billion to $1.5 billion this year. It has completed a $448.6 million deal and has another $120 million in development to track construction this year. Meanwhile, it has hundreds of millions of dollars in potential investments in the pipeline. This gives the company confidence that it can invest capital at the high end of the target range this year, exceeding the top cap if market conditions improve.

The double growth driver of landlords should make it Steadily increase its dividend. Although WP Carey resets payment levels after exiting the office in 2023, it has been steadily rebuilding its dividend by raising it every quarter. Its dividend has increased by 2.9% over the past year. The company aims to grow spending at the same interest rate as the adjusted funds after operation (FFO), That's Compared with the same period last year, the first quarter was up 2.6%.

Investing in WP Carey can easily start earning passive income. Real Estate Investment Trusts have a diversified portfolio of real estate that can steadily increase rental income. The company also invests money to expand its portfolio, providing It's with Other sources rise Rental income. These features allow it to pay shareholders profitable dividends, allowing them to turn cash into passive income.

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Matt Dilallo has a position at WP Carey. Motley fool has no position in any stock mentioned. Motley Fool has a disclosure policy.

Have a $5,000 investment? Purchasing this nearly 6% dividend stock can turn it into nearly $300 in easy passive income each year. Originally published by Motley Fool